Quantum computers have a real problem. Small errors slip into calculations all the time, and catching and fixing them fast enough has been a real issue for the industry. On Tuesday, Sept. 22, IonQ (NYSE: IONQ) said it may have found a solution to this problem.
IonQ’s statement said it has developed the industry’s first end-to-end, real-time quantum error-correction decoder. Even better, this breakthrough runs on a single standard CPU. This gives IonQ a real edge in this highly competitive race.
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The day after the announcement, IonQ also said its Superion 256 will become the first on-premises quantum processor at Nvidia‘s (NASDAQ: NVDA) Accelerated Quantum Research Center.
The stock price rose more than 11% on Wednesday, in line with the good news. IonQ remains a high-risk, speculative investment. In particular, the decoder was validated on simulated data rather than in a live system. How commercially viable quantum computing will be in the coming years remains to be seen.
IonQ’s valuation is also quite rich. It’s deeply unprofitable as well. Investors interested in this space should recognize the sector’s longer time horizon and volatility. Shares of IonQ have actually fallen more than 40% in the past year.
For investors willing to stay invested for the next several years as this nascent sector finds its footing and use cases, this IonQ breakthrough is significant enough to consider buying the stock, in my opinion.
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